It is estimated that 80% of financial institutions will either go out of business or be irrelevant by the year 2030. Here are 8 steps that will ensure your financial institution is one of these:
- Focus on revenue from fees, transactions and products – consumers are more interested in financial institutions that can offer digital, consumer-centric value-added products and services.
- Forget about open banking – open banking is the new reality and not just a passing fad.
- Don’t worry about new competitors – challenger banks and other disrupters are making big strides into offering compelling new financial services.
- Ignore demographic changes – millennials and generation z think, act and have different expectations than previous generations.
- Avoid the cloud – cloud-based solutions offer numerous benefits to both financial institutions and consumers, including faster accesses, reduced costs and greater flexibility.
- Pass on real-time payments (RTP) – RTP is already proving a great success in Europe, a trend that will no doubt continue to expand.
- Don’t embrace FinTechs – FinTechs aren’t competitors; they can be allies that usher financial institutions into the future.
- Let others innovate – innovation is hard and often requires massive restructuring and budgets. But it ultimately leads to becoming more oriented towards consumers and value-added products/services.